Beacon Redevelopment Enters Into Lease Negotiations for Riverfront Property for Coal Distribution Centeradmin
Beacon Redevelopment Industrial Corporation announced that it entered into negotiations to acquire a ten year lease with an option to purchase a riverfront property to form the company’s coal distribution center.
The location, totaling 8.4 acres, in Sewickley Township, Westmoreland County, Pennsylvania, is situated on the Youghiogheny River. A working railroad runs through the property, and road access is available. “The property provides Beacon with a perfect distribution and storage site for its coal operations,” Adam Marek, Beacon’s President, said. Using equipment such as the Pennsylvania Crusher and the Posimetric Feeder, Beacon will be able to prepare its coal in a manner that will achieve maximum revenues per ton.
Under the proposed lease, Beacon Energy Corporation will also acquire the right to locate and develop natural gas wells on the property. It will receive 80% of the revenue from any gas taken from the property. For gas wells established during the ten year period, Beacon will receive the revenues for fifteen years after the lease expires if it does not choose to purchase the property. “The land owner purchased this land previously held by a large developer which never realized the natural gas potential on the property,” Marek advised.
In both 2007 and 2008, Westmoreland County had the largest number of gas well permits applied for in Pennsylvania. In fact, nearly 13% of all gas well permits over the last two years originated in Westmoreland County. “Westmoreland County’s natural gas reserves are significant, and this is one of the main reasons we are focused in that area. With new technologies that enable the ability to extract natural gas from the Marcellus Shale reserve, up to 6,000 feet deep, properties such as this are ideal to stimulate revenues,” Marek explained.